Dow Enhances Circular Economy with Xycle Investment
Rotterdam, Thursday, 20 March 2025.
Dow invests in Xycle to advance its recycling technology, aiming to process 21 kilotons of plastic waste annually by 2026 and produce high-value, circular materials.
Strategic Investment and Partnership
In a significant move announced on March 11, 2025, Dow has taken an equity stake in Rotterdam-based Xycle, joining forces with other major investors including ING, Invest-NL, Polestar Capital, and Vopak [1][2]. The investment underscores Dow’s commitment to transforming plastic waste into valuable materials through advanced recycling technologies [3]. Stephanie Kalil, Commercial Vice President of Dow Packaging & Specialty Plastics EMEA, emphasized that this robust financial backing demonstrates the potential to scale advanced recycling technologies while addressing growing customer demand for circular products [4].
Advanced Recycling Technology
Xycle’s innovative technology utilizes low-temperature pyrolysis to break down difficult-to-recycle plastic waste into pyrolysis oil [1]. This advanced process enables the conversion of mixed plastic waste that cannot be mechanically recycled, effectively diverting materials from landfills or incineration [3]. The technology has demonstrated best-in-class yield for cracker feedstock, according to Xycle’s CEO Arnd Thomas [1].
Rotterdam Facility Development
The investment will support the construction of Xycle’s first commercial-scale advanced recycling plant in the Port of Rotterdam, scheduled to be fully operational by Q4 2026 [1][3]. The facility will have a projected plastic waste processing capacity of 21 kilotons annually, with Dow committed to purchasing the circular feedstock produced at this plant for manufacturing new circular plastics [3]. This development aligns with Dow’s broader strategy to transform 3 million metric tons of plastic waste and alternative feedstocks into circular and renewable solutions annually [4].
Future Expansion Plans
Looking beyond the Rotterdam facility, Xycle has outlined ambitious plans for global expansion [1]. The company intends to develop additional advanced recycling facilities worldwide, utilizing larger reactor sizes to increase single plant capacity to 100 kilotons annually [3]. Mark Weustink, head of Sustainable Investments at ING, noted that Xycle’s innovative approach aligns well with their ambition to invest in companies that make a positive environmental impact [4].